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Home My WebLink About03/07/2017 06A 4th Quarter 2016 Accounts Receivable Status Report xs .1 �5 .may s n. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.A. For Meeting of: March 7, 2017 ITEM TITLE: 4th Quarter 2016 Accounts Receivable Status Report SUBMITTED BY: Tara Lewis, Interim Director of Finance & Budget SUMMARY EXPLANATION: The Accounts Receivable Report for the fourth quarter of 2016 is attached and consists of the following: 1. Summary narrative 2. Exhibit I - Central Billing Accounts Receivable and Installment Accounts 3. Exhibit II - Summary of Gambling Tax Delinquency 4. Exhibit III - LID Assessment Receivables ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED f 41 FOR ifCity SUBMITTAL: Manager APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 4th Qtr 2016 Accounts Recemble Status Report 211712017 Exhibit City of Yakima FINANCE DEPARTMENT STAFF REPORT March 7,2017 SUBJECT: Accounts Receivable Status Report 4th Quarter 2016 SUBMITTED BY: Finance Department CONTACT PERSON: Tara Lewis,Interim Director of Finance and Budget The Accounts Receivable Status Report presents the status of General and Installment Accounts Receivable as of December 31, 2016 that are billed through the City's Central Billing office. ACCOUNTS RECEIVABLE Exhibit I contains two charts summarizing activity and balances as of December 31, 2016. The first chart depicts general accounts receivable listed by the type or category of bill. The second depicts LID assessment accounts in total. The reports display the frequency of billing, the number of customers, the balance at the beginning of the reporting period, the amount billed and payments received during the quarter and the ending balance. Information as to the status and age of the general accounts receivable is also provided. Various categories of accounts may have different collection requirements. For example,unpaid sewer contracts become a lien against the real property. For categories such as traffic, miscellaneous, and parks the City uses a collection agency to collect significantly past due accounts. Accounts in Collection status have been placed with the City's collection agency. Accounts are classified as uncollectable when the original bill date is beyond the statute of limitations for collection; the agency cannot locate the party; or the customer has been declared bankrupt or is deceased. At year end,uncollectable general accounts are recommended to the City Council for write-off, typically at the first meeting in December. Once an item has been billed it takes Council action to remove it from the City's records. Note that this report does not include regular Utility Account or Municipal Court Receivables. Page 1 of 5 RECURRING RECEIVABLES Downtown Yakima Business Improvement District-Annually/Quarterly (DYBID) —This assessment began in December 2008 and was renewed in 2012. It replaced the Parking& Business Improvement Area (PBIA). There are two types of billings, quarterly to all property/ business owners and annual billings to all individual businesses located in this area. Annual Charges—The $15,421 in the collection column is for 84 accounts. Quarterly Charges—The $9,630 in the collection column is for 24 accounts. Fire Alarm Monitor(FAM)—There is one account in collection totaling$30. Front Street Business Improvement Assessment (FSBI) —A total of 10 accounts are in collection, totaling$2,719. Fruitvale Canal Billing—There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $275 in the collection column represents six accounts. Miscellaneous Billing—Recurring billings in this category include transit bus passes,refuse charges and retiree premiums for health benefits, along with other truly miscellaneous one-time charges. The $10,677 in the collection column represents 33 accounts that are primarily refuse bin charges. Intergovernmental—This category includes billings to other governmental agencies, including state agencies, counties, cities, school districts, and local police and fire departments. It should be noted that entities participating in YAKCORPS are given the option to pay the entire annual invoice when received, or split it in half. Traffic Engineering/Engineering Billing—This account is generally for sidewalk safety repairs, and currently has nothing in collection. Parks and Recreation Billing—This account includes billings for pool and field rentals, along with other program charges. The $3,924 in the collection column is for ten accounts. Airport The majority of the $1,830 in the collection column is mainly for one vendor at the Airport, which is for a delinquent lease. The $2,615 in the legal column pertains to a land lease that is outstanding. The Water/Wastewater Invoices and Connections—The $21,582 in collection is for 21 Water/Sewer invoices/contracts and fire hydrant meter charges, damages to Water/Sewer equipment, and utility back billings. Gambling Tax This quarter the City received$202,842 in gambling tax revenue,bringing the year to date total to $914,755 which represents almost 100% of the amended budget amount of$917,000. Page 2 of 5 Gambling Tax Delinquencies—Exhibit II details the status of delinquent gambling tax accounts. One delinquent account,totaling$15,720,has been sent to collection. Another account with taxes owing of$11,465 has now made payment arrangements coordinated by the Legal department. We have informed the Gambling Commission of the status of these accounts and keep them informed of any changes in their status. When a judgment is granted the Gambling Commission can revoke the company's license. INSTALLMENT ACCOUNTS Local Improvement District(LID)—Exhibit III summarizes the status of outstanding LID receivables. The delinquent amounts are unpaid installments for prior years plus interest. As of the end of the quarter, the delinquent principal balance is$68,404. When accumulated interest of $25,880 is added, the total amount past due is$94,284. Page 3 of 5 EXHIBIT I CENTRAL BILLING ACCOUNTS RECEIVABLE (as of December 31,2016) GENERAL ACCOUNTS Approximate Quarterly Activity Status Billings Beginning New Inv Payments/ Ending Current to Over Over Recurring Receivables M Q A Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual(DYBIDA) - - 280 $ 17,931 $ - $ 1,350 $ 16,581 $ - $ - $ 1,160 $ 15,421 $ - Quarterly(DYBID) - 265 - 24,977 327 3,453 21,851 159 3,525 8,537 9,630 - Fire Alarm Monitor(FAM) - - - 30 - - 30 - - - 30 - Front Street Business Impr(FSBI) - 25 - 4,936 - 416 4,520 - 634 1,168 2,719 - Fruitvale Canal Billing(FC) - - 50 400 - - 400 - - 125 275 - Miscellaneous 110 - - 433,625 72,811 82,369 424,067 10,585 - 402,806 10,677 - Intergovernmental 525 20 30 391,064 535,601 837,690 88,976 76,659 - 12,317 - - Traffic Eng./Engineering 3 - - 1,570 100 50 1,620 100 - 1,520 - - Parks&Recreation(WEED) 10 - - 16,451 12,593 17,567 11,477 1,403 - 6,151 3,924 - Airport 400 - - 34,323 111,503 115,533 30,292 25,481 133 233 1,830 2,615 Water/WW Invoice&Connections City of Yakima 90 - 5 110,178 504,770 439,838 175,109 88,784 - 64,743 21,582 - Terrace Heights/Union Gap 4 4 1 63,597 340,635 299,952 104,280 104,280 - - - - Sub-total Receivables 1,142 314 366 1,099,082 1,578,340 1,798,220 879,202 307,450 4,292 498,758 66,088 2,615 Gambling Tax - 20 - 35,199 202,842 210,856 27,185 - - - 15,720 11,465 Total 1,142 334 366 $1,134,281 $1,781,182 $2,009,076 $ 906,387 $ 307,450 $ 4,292 $498,758 $ 81,807 $ 14,080 INSTALLMENT ACCOUNTS Approximate Original Beginning Quarterly Activity Ending Delinquent Billings Principal Prinicpal Total Principal Interest& Total Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments - - 175 $1,773,787 $ 260,406 n/a n/a $ 9,082 $251,324 $ 68,404 $ 25,880 $ 94,284 Legend: M=Monthly Q=Quarterly A=Annually Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of December 31,2016) Account(s)sent to Collection: Michael's Tavern(1st-4th Qtr 13) $ 11,938 Michael's Tavern(1st-2nd Qtr 14) 3,781 15,720 Account currently at with payment arrangements per Legal: Brews&Cues(1st-4th Qtr 10) 236 Brews&Cues(1st-4th Qtr 14) 6,329 Brews&Cues(1st-4th Qtr 15) 4,900 11,465 Total $ 27,185 EXHIBIT III LID ASSESSMENT RECEIVABLES (as of December 31,2016) Quarterly Principal Activity Delinquent #of Beginning Ending Total LID#-Description Accts Balance Payments Balance Principal Interest Past Due 1052-Willow Area Watermain 2 $ 286 $ - $ 286 $ 285 $ 28 $ 313 1056-S.7th,8th,&9th Avenue Sewer 12 2,129 400 1,729 1,730 174 1,904 1057-N.84th Avenue&Hawthorne Drive Sewer 8 18,131 - 18,131 18,131 7,933 26,065 1058-N.95th Avenue,94th Place,W.Yakima Avenue Sewer 12 9,191 1,170 8,021 8,021 3,680 11,701 1060-N.85th Avenue&Kail Drive Sewer 10 41,608 6,740 34,868 778 204 982 1061-Simpson Lane Sewer 49 145,276 772 144,504 39,458 13,860 53,319 Total 93 $ 216,621 $ 9,082 $ 207,540 $ 68,404 $ 25,880 $ 94,284 Page 5 of 5